car loan

[KangYu]

if i wanna buy a car,when my bank approved loan.
which is the best option.
1) getting cash loan(equal to car cost)
OR
2) auto loan as bank and me are listed in title.

right now i got for 6.0 APR.

[Murali]

Either way, where ever u get better rates.
Look for some deals where car company offer the loan themself.
You can also look for DCU or any other credit union they give you better rates.

these article may further help
http://www.path2usa.com/lifestyle/auto/car_loan.htm
http://www.path2usa.com/lifestyle/auto/car_refinancing.htm

[soormabhopali]

Best way pay all money from pocket dont take any loan .
But if u can't look for auto loan ,avoid banks .look for credit unions and dealer financing u may get better rate ...
Best of luck
dont forget to post back which car u got?

[KangYu]

Best way pay all money from pocket dont take any loan .
But if u can't look for auto loan ,avoid banks .look for credit unions and dealer financing u may get better rate ...
Best of luck
dont forget to post back which car u got?

i spoke to my bank,technology credit union,they offered 6.0 apr and right now i have 1998 camry for 7,000 bucks of 64K milage,what is the best offer,can you help me.

can i go for $7,000 for this camry or can ig et low rate.
condition is good.

[saisai]

Instead of investing on used car(65K miles) is it not good to buy a new one or lease it for 2 yrs and buy the same car after lease period. it works out cheap on montly basis. This is how my spouse convinced me to buy a new car last year. :p

[KangYu]

in my city leasing is not possible,i think.
But sai if you know how to get lease the car give me tips.
my friends in detroit,they are leasing from chrysler,they are getting good deels.but it is god for one or 2 peoples,but i am family and my in laws are coming.so tell me which is good option.

[hardcorerahmanite]

kang, there is a credit union in CA by the name Star One. They are giving 5.85% rate for 7 years on a Used car.

check their website www dot starone dot org

[KangYu]

hi Rahaman,sai,jagdeep saab and murali,

i am very thankful to you guys,you guys giving very valuble info.
hats up to PATH2USA

[saisai]

in my city leasing is not possible,i think.
But sai if you know how to get lease the car give me tips.
my friends in detroit,they are leasing from chrysler,they are getting good deels.but it is god for one or 2 peoples,but i am family and my in laws are coming.so tell me which is good option.


In which city do you live?

Leasing is a better option for expensive cars. If you want to buy a 20K car You might well as finance it thru some credit union.But If you are looking for expensive ones like BMW,Acura, Lexus where unless you put a substantial downpayment, you are lookinmg at 600-800 a month if you finance it.
But if you lease the same car, you would put a downpayment of 2500-3500 and monthly payment ranging from 350-500 depending upon the options you choose in the car.

In my case, I leased a 2006 bmw for 2 yrs/24k Miles for $407/month.The total sale price was 33500 after negotiations. You can reduce the monthly payment by negotiating the sale price. But you cannot reduce the residual-the price you have agreed to pay at the end of the lease from the Dealer/car manufacturer if you chose to buy it. (it is based on MSRP)
At the end of the lease I can purchase the car for 25,500 or I can walk away.

The downside is when you decide to buy the car at the end of the lease,it is better if you pay as much as you can. I mean atleast 10-15k and finance the rest.Otherwise you will end up paying interest for another 48-60 months on top of what you paid for the preceding 2 yrs. In my case if I end up financing the entire 25k, I will lose 3500-4500 in interest based on the APR. But If I pay 10 k and finance the rest I will cut down the interest but still will lose some.
The other thing is if the car is totalled, you have lost all you have put in the car.The insurance company will pay the owner of the car.(Mind you when you lease the car you are not the owner, the car compnay, dealer, or bank is the owner)


check this example from edmunds:

Let's start with a simple definition of residual value. In fact, let's just look at the word residual. Residual means the part that is left after some of it has been taken away.

OK, so how does this apply to leasing? Well, when you lease a car, you pay for that portion of the car's value that you use. In other words, let's say you leased a $20,000 car for three years, and it was worth $10,000 at the end of the lease. In this scenario, you've used $10,000 worth of the car's value, or 50 percent of the car's original price. Your payments would be $10,000 divided into 36 monthly payments of $277 (plus interest, tax and related fees).

Now, let's stick with that same example. What if the car you had decided to lease didn't lose 50 percent of its value over three years? Instead, it lost only 35 percent of its value. Then, your $20,000 car would only have lost $7,000 of its value. Your monthly payments would be $194 (plus interest, tax and fees).

If you lease a $35,000 German luxury car for three years and it has a residual value of 70 percent, it is worth $24,500 at the end of the lease. It has only lost $10,500 of its value, and you will have paid $291 a month (plus interest, tax and related fees). Now compare that to, say, a $25,000 American-made minivan that has a residual value of 50 percent after three years. The minivan has lost $12,500 of its value, and the monthly payment would be about $347 a month.


If you plan to buy a camry, Accord just finance them but for expensive ones go for lease if you think its worth it.

1. do not tell the dealer whether you will lease it or buy it.. negotiate the price ..start from invoice price(check carsdirect.com) .do not come down from MSRP. and atlast tell him
2.if the car is on the lot the dealer will sure give u a good deal
3. dealers will ask you" what kinda monthly payment your looking at?"
dont give them any figure.
4. Do not put any money down other then what is required.Downpayment will bring your monthly payment down but if something happens to car or if it is stolen you lose everything.
5.negotiate , negotiate and negotiate
there are are lot of terminologies in leasing
1.residual
2. money factor (eg .00250 multiplying it by 2400 will give you the APR)for bmw 325i it is .00250 , for bmw 330i it is .00195. you can negotiate this also

if you need more help let me know.